The ‘bonds are back’ narrative has been in full swing this year with asset managers and investors playing up the “once in a generation” opportunity in the fixed income space.
While rising interest rates have posed a threat to risk assets so far in 2023, economic data has proved resilient in the face of hawkish monetary policy, leaving many investors unsure about where to allocate within bonds while some have experienced FOMO on the surge in tech stocks.
Despite this, those anticipating a recession have driven demand for fixed income ETFs, within flows hitting record highs in the first half of the year at €31bn, according to data from Morningstar...
This article first appeared in ETF Insider, ETF Stream's monthly ETF magazine for professional investors in Europe. To read the full article, click here.
